Budget 2024: Under the new tax system in the interim budget presented on February 1, the existing tax exemption can be increased from Rs 7 lakh to Rs 7.5 lakh. A finance bill can be introduced for this change.
Before the Lok Sabha elections, the government can give big relief to the taxpayers. Under the new tax regime in the interim budget presented on February 1, the existing tax exemption can be increased from Rs 7 lakh to Rs 7.5 lakh. It is being told that a Finance Bill can be introduced for this change. Two officials associated with the case gave this information.
Experts say that if the government takes this decision, then taxpayers will not have to pay any tax on annual income up to Rs 8 lakh in the new tax system. This exemption also includes a standard deduction of Rs 50 thousand. The government had increased the exemption from Rs 5 lakh to Rs 7 lakh under the new tax regime in the 2023 budget.
Standard deduction was included
It is noteworthy that the government had given relief by making many changes in the new tax system in Budget 2023. According to this, earlier no investment or deduction could be claimed in the new tax system, but standard deduction has been included in the budget. Under this, taxpayers are given a tax deduction of up to Rs 50,000. At the same time, pensioners are being given a rebate of up to Rs 15,000 under this system.
Tax limit was increased
Apart from this, there was also a change in the tax slab of the new system. Under this, the basic exemption limit was increased to Rs 3 lakh from the earlier Rs 2.5 lakh.
Record ITR filed
A record 8.18 crore income tax returns (ITR) were filed till December 31 for assessment year 2023-24. This was 9 per cent more than the 7.51 crore ITRs filed in the same period in 2022-23.
Tax revenue increased by 14.7 percent
The government is emphasizing on increasing its tax collection. In the April to November period last year, tax revenue grew by 14.7 per cent, which is higher than the budget estimate of 10.5 per cent for direct taxes and 10.45 per cent for indirect taxes. Experts suggest that the government should consider more tax relief.
